Griffin emphasized that Kalshi lets users as young as 18 participate in its so-called prediction market, despite Arkansas law prohibiting most persons under the age of 21 from participating in conventional and regulated gambling activities.
Arkansas has filed lawsuits against “prediction market” platform Kalshi and an Australia-based company that operates an online casino, accusing both of running illegal gambling operations.
According to The Arkansas Advocate, state Attorney General Tim Griffin announced the two lawsuits on Wednesday. It names Kalshi as a defendant alongside VGW, an online platform that offers games with names like Chumba Casino, LuckyLand Casino, and Global Poker.
“Kalshi has built a global business that it calls a prediction market, allowing consumers to wager money on the outcome of just about anything. You can wager on the outcome of elections, reality competition shows, football games, and much more,” Griffin said in a press release. “It doesn’t take a genius to understand that wagering money on whether the Razorbacks win or lose is gambling, And gambling on an unregulated platform is squarely prohibited by Arkansas law.”
Griffin emphasized that Kalshi lets users as young as 18 participate in its so-called prediction market, despite Arkansas law prohibiting most persons under the age of 21 from participating in conventional and regulated gambling activities.
“Arkansas law is concerned with substance, not semantics, and in Arkansas, gambling is regulated to protect consumers. Instead of obtaining the licenses, submitting to the oversight, complying with the restrictions, and paying the taxes required of lawful gambling operators in Arkansas, Kalshi opened its platforms to Arkansas consumers, including individuals as young as 18 years old, encouraged them to wager real money on sporting and entertainment events, and profited from those wagers,” Griffin said.
The state’s lawsuit against VGW makes similar claims, but notes that, unlike Kalshi, the Australia-based company attempts to conceal its alleged gambling operation through an exchange of virtual currency for real-world money.
“VGW rests its claim that it does not provide gambling services on a distinction between two virtual currencies. One is called ‘Gold Coins,’ and it is effectively worthless. But consumers purchase Gold Coins with real money,” Griffin said in a separate press release. “When they do, they receive ‘Sweeps Coins’ as a bonus. Sweeps Coins can be used to play online casino-style games, and users can redeem Sweeps Coins they win through those games for actual cash. Any reasonable person would call that gambling.”
“While masquerading as a free sweepstakes, defendants accepted money from Arkansans, provided them the means to gamble, and paid out winnings in cash and other prizes,” the lawsuit alleges.
Arkansas is now asking the courts to prohibit both businesses from continuing to operate unregulated gambling enterprises; it has also requested a range of civil penalties and damages.
Sources
Arkansas accuses prediction market, online gaming platform of operating illegal gambling6
Attorney General Griffin Files Lawsuit against Online Gaming Platform VGW for Illegal Gambling
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